Full employment

Correct answer: A. Broad use of the available labour force

Full employment refers to a situation in which all people who are willing and able to work at prevailing conditions can find work, apart from unavoidable frictional or structural unemployment. It does not mean that every person works continuously. It is a major macroeconomic objective because employment affects income, output and living standards. Therefore, option A is correct.

Correct answer: A. To understand resource use and the productive capacity of the economy

Full employment is a macroeconomic objective in which available labour is used productively, apart from unavoidable frictional or structural unemployment. Studying it helps economists assess unused resources, potential output, income generation, and economic welfare. It does not mean that every individual is employed at every moment.